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Homework answers / question archive / The standard cost sheet for a product is shown
The standard cost sheet for a product is shown.
Manufacturing Costs |
Standard price |
Standard Quantity |
Standard Cost per unit |
|
| Direct materials | $4.70 per pound | 6.10 pounds | $ | 28.67 |
| Direct labor | $12.16 per hour | 2.00 hours | $ | 24.32 |
| Overhead | $2.20 per hour | 2.00 hours | $ | 4.40 |
| $ | 57.39 | |||
The company produced 3,000 units that required:
• 18,800 pounds of material purchased at $4.55 per pound
• 5,900 hours of labor at an hourly rate of $12.56 per hour
• Actual overhead in the period was $13,680
Fill in the Budget Performance Report for the period. Some amounts are provided. Round your answers to the nearest dollar. However, do not round your intermediate calculations.
| Budget Performance Report | |||
|---|---|---|---|
Manufacturing Costs: 3,000 units |
Actual Costs |
Standard Costs |
Variance (Favorable)/ Unfavorable |
| Direct materials | $85,540 | ? | ? |
| Direct labor | ? | 72,960 | ? |
| Overhead | 13,680 | ? | ? |
| ? | ? | $1,154 | |
Split the direct materials cost variance into the materials price varaince and the Direct materials quantity variance. Remember that you want to isolate the price variance from the quantity variance so be sure to use factors that do not overlap. Also remember that the two variances should equal the total direct material cost variance.
| Direct materials price variance: | Direct materials quantity variance: |
| (Actual price - Standard price) x actual quantity | (Actual quantity - Standard quantity) x standard price |
| $2,820 favorable | $2,350 unfavorable |
Split the direct labor cost variance into the direct labor rate variance and the direct labor time variance. Remember that you want to isolate the price variance from the efficiency variance so be sure to use factors that do not overlap. Also remember that the two variances should equal the total direct labor cost variance.
| Direct labor rate variance: | Direct labor time variance: |
| (Actual rate - Standard rate) x hours | (Actual hours - Standard hours) x labor rate |
| ? | ? |
Manufacturing variances are period costs that are rolled into_______? and reported on the________? . A favorable variance is recorded as a _________? and an unfavorable variance is recorded as a________? .
